Answer:
no, revenues would fall because she far fewer cupcakes.
Explanation:
given data
sells Q = 100
cupcakes per day P = $2 each
raising price P' = $2.50
price elasticity of demand e = 2
solution
when here e > 1, price and TR move in opposite direction.
when price is increase to $2.5,TR falls
when Q falls more than rise in P
so here no, revenues would fall because she far fewer cupcakes.
